- CZ is nearing the end of his four-month prison term for violating the Bank Secrecy Act.
- CZ and Binance face new investor lawsuits related to fund security and laundering.
- Binance paid $4.3 billion in fines, and CZ stepped down as CEO amid legal issues.
Binance founder Changpeng Zhao (CZ) may be nearing the end of his four-month prison sentence for violating the Bank Secrecy Act.
According to the U.S. Federal Bureau of Prisons website, a 47-year-old Asian man named “CHANGPENG ZHAO” will be released on September 29, 2024, with the registration number 88087-510. While this news has not significantly impacted BNB’s price yet, it is drawing attention as Zhao faces new legal challenges.
Zhao was convicted of violating the Bank Secrecy Act (BSA) due to Binance’s failure to implement adequate know-your-customer (KYC) procedures. CZ, who had reported to a federal prison in California earlier this year, received a shorter sentence than the three years the federal prosecutors initially sought.
His four-month term, handed down in April, came alongside a $50 million fine. As part of the settlement, he also stepped down as CEO of Binance. Binance itself pleaded guilty to related charges of money laundering and sanctions violations, paying $4.3 billion in fines.
Read also: Changpeng Zhao Release Date: The Truth Behind the Rumors
Two weeks ago, reports emerged on social media about Zhao’s release. However, a Protos update clarified that Zhao remained in custody. According to the report, he was transferred from FCI Lompoc II in California to a halfway house in Long Beach, a typical step for inmates nearing the end of their sentences. This transition is aimed at helping with reintegration into society, but it does not mark the completion of his sentence.
New Legal Challenges for Binance and Zhao
As Zhao approaches the end of his sentence, new legal challenges have emerged. In mid-August, three crypto investors filed a lawsuit against Zhao and Binance of security complacency, resulting in enabling the laundering of stolen funds through the exchange. The plaintiffs argue that these lapses compromised the security of user funds, adding further pressure to the already embattled Binance founder.
Read also: Binance CEO Reveals CZ’s Lifetime Ban: A Major Blow
Zhao’s legal issues and his role in the global cryptocurrency market will continue to shape public attention as he prepares to reintegrate following his release.
Meanwhile, this recent development is yet to affect BNB’s market trend. At of press time, BNB trades at $ 546.41, reflecting a 2.71% intraday dip.
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